rivate/public insurance mix is most practical way to achieve universal coverage

Health insurance reform plans that build on a mix of private and public health insurance, where costs are shared among government, employers, and enrollees would have great potential to move the system to high performance and would be the most practical to implement according to a new report released today by The Commonwealth Fund Commission on a High Performance Health System. Commissioners are a diverse group of leading health policy experts from government, private industry, health care delivery organizations, academia, and professional associations. Affordable, comprehensive health insurance coverage for all Americans is essential to achieving a high performance health system, say the report authors, because coverage helps to ensure access to essential preventive services; improve overall health; cut down on inefficiencies like duplicate medical tests; reduce administrative costs; and eliminate costly uncompensated care for uninsured and underinsured families. However, the way coverage reform plans are designed will be critical to their success and ability to offer all participants access to high-quality, efficient, and equitable health care, according to the analysis, A Roadmap to Health Insurance for All: Principles for Reform, prepared for the Commission by Sara Collins, Assistant Vice President at The Commonwealth Fund and colleagues. The report is the first of three major policy reports the Commission will issue this Fall.

“If we do health reform right, we can get all Americans covered, improve quality and efficiency, and control skyrocketing health care costs,” said Collins.

The report describes how all of the health insurance reform plans now being proposed by presidential candidates and lawmakers fall into one of three general types—tax incentives and individual insurance markets; mixed private-public group insurance with shared responsibility for financing; and public insurance. The report also outlines key principles for health care reform that all Americans should keep in mind as they consider these plans. For example:

-- Provides equitable and comprehensive health insurance to all Americans, regardless of income or health status, in a way that ensures full and equal participation.
-- Provides a minimum, standard benefit floor.
-- Premiums, deductibles, and out-of-pocket costs are affordable relative to family income.
-- Enrollment is automatic and seamless.
-- Provides a choice of health plans or care system; people can keep their current insurance if they so choose.
-- Administrative costs should be reduced and the plans simple to administer. Health risks are pooled across broad groups.
-- Financing should be adequate and the costs shared among federal and state governments, employers, individual households and other stakeholders.
-- Provides equitable and comprehensive health insurance to all Americans, regardless of income or health status, in a way that ensures full and equal participation.
-- Provides a minimum, standard benefit floor.
-- Premiums, deductibles, and out-of-pocket costs are affordable relative to family income.
-- Enrollment is automatic and seamless.
-- Provides a choice of health plans or care system; people can keep their current insurance if they so choose.
-- Administrative costs should be reduced and the plans simple to administer. Health risks are pooled across broad groups.
-- Financing should be adequate and the costs shared among federal and state governments, employers, individual households and other stakeholders.
www.physorg.com

African farmers offered drought insurance

Insurance giant Swiss Re has launched an initiative to offer African farmers cover against droughts ruining their crop harvests.

The microinsurance industry is expanding, with other firms offering cover for people on low incomes. Zurich Financial Services (ZFS) for example formed a partnership with a Swiss government agency earlier this year.

The microcredit industry started in the late 1970s but has snowballed in recent years as companies have recognised both the benefits of ethical business practices and the opportunity to tap into a new market.

Swiss Re said on Thursday it aimed to provide protection against adverse weather conditions for up to 400,000 people in Ethiopia, Ghana, Kenya, Malawi, Mali, Nigeria, Rwanda, Senegal, Tanzania and Uganda.

This follows the launch of a $2 million (SFr2.34 million) scheme earlier this month to protect 150,000 farmers in Ethiopia, Kenya and Mali against the economic effects of severe droughts.

"After witnessing the terrible natural catastrophe of the [2004 Indian Ocean] tsunami that brought misery to people who were not insured, we thought about what we could do for people without a lot of capital," Swiss Re spokesman Henner Alms told swissinfo.

"But there is a clear business aspect too. If these solutions for African villagers prove successful, they could be extended elsewhere too."

Sustainability warning

Microinsurance is not a new venture for Swiss Re as the firm had already pioneered weather protection policies in India three years ago.

ZFS has been present in Bolivia since 1999 selling, among other things, life insurance policies that encourage saving by paying out an amount to relatives based on how much the holder had in their bank account.

ZFS entered into a partnership with the Swiss Agency for Cooperation and Development (SDC) and the International Labor Organization (ILO) in February to extend microinsurance for life, property and possessions to Africa, Asia (primarily China) and throughout Latin America.

"We entered into the partnership in order to crystallise this into a real growth and corporate responsibility strategy," ZFS head of microinsurance Brandon Mathews told swissinfo.

Alliance Sud, a group of six leading Swiss development organisations, gave a broad welcome to microfinance in general, but warned that the innovation had to be properly applied to avoid potential pitfalls.

Partnerships crucial

"If you do not offer sustainability along with the cash, then the attitude of the people will change and they will just take the easy money without thinking of the long-term," spokesman Bruno Stöckli told swissinfo.

"Swiss companies need to make sure that local partners are stable enough to handle all this new money coming in," he added.

With this warning in mind, Swiss Re has chosen to work in partnership with NGO Millennium Promise. ZFS will draw on the experience of the SDC while tapping into new markets.

"The SDC works with many of the populations where we should be able to provide these products. They have substantial knowledge built over many years engaging these populations and these markets," Mathews told swissinfo.

www.swissinfo.org

BB&T Insurance Services buys Atlanta agency

BB&T's insurance arm will buy a two-office metro Atlanta insurance agency, expanding its presence in a lucrative Southeastern market.

BB&T Insurance Services, headquartered in Raleigh, will acquire Sidney O. Smith Inc., which has offices in Gainesville and Alpharetta, Ga., and provides commercial and personal property and casualty coverage to 17,000 clients.

The acquisition will likely close in November, the company said. Terms weren't disclosed.

Sidney O. Smith, the first licensed insurance agent in Georgia, founded his eponymously named agency in 1916. The current majority owners are CEO George D. Jones and President Jim Moore.

Moore will become agency manager following the merger.

BB&T, headquarted in Winston-Salem, is the No. 3 bank in the Triangle by market share. Shares were down 1.2 percent in early afternoon trading Friday to $40.48.

www.bizjournals.com

SeaBright Insurance Holdings Expands Board and Elects Rice

SeaBright Insurance Holdings, Inc. (Nasdaq: SEAB) has announced that it has elected Michael D. Rice to its Board of Directors. Mr. Rice will fill a newly-created position on the board, bringing the number of directors to seven, including six outside directors. Mr. Rice has proven, long-term experience and expertise in insurance product marketing and distribution. He served for the past 41 years in a variety of senior corporate leadership positions at Aon Corporation, most recently as its Executive Vice President. Mr. Rice had previously served as CEO of several Aon subsidiaries specializing in national distribution of insurance products via independent brokers, wholesale brokerage, managing general underwriters and direct marketing. After a successful and distinguished career, he now plans to retire from Aon. John Pasqualetto, President, Chairman and CEO of SeaBright Insurance Holdings, Inc., said, "Mike Rice is a terrific addition to our expanded Board. We sought a new Director with proven senior executive leadership experience in insurance distribution with a major publicly traded brokerage firm. Mike matches our criteria perfectly. We are indeed fortunate to welcome him to the SeaBright Insurance Holdings Board of Directors.” SeaBright Insurance Holdings, Inc. is an insurance holding company whose wholly owned subsidiary, SeaBright Insurance Company, operates as a specialty underwriter of multi-jurisdictional workers’ compensation insurance. SeaBright Insurance Company distributes its maritime, alternative dispute resolution and state act products through selected independent insurance brokers and through its in-house wholesale broker affiliate, PointSure Insurance Services. SeaBright Insurance Company provides workers’ compensation coverage to employers in selected regions nationwide. To learn more about SeaBright Insurance Company and SeaBright Insurance Holdings, visit our website at www.sbic.com.
http://newsticker.welt.de

Why Does Everyone Bow Down to the Health Insurance Industry?

Bow your heads and raise the white flags. After facing down the Third Reich, the Japanese Empire, the U.S.S.R., Manuel Noriega and Saddam Hussein, the United States has met an enemy it dares not confront -- the American private health insurance industry.

With the courageous exception of Dennis Kucinich, the Democratic candidates have all rolled out health "reform" plans that represent total, Chamberlain-like, appeasement. Edwards and Obama propose universal health insurance plans that would in no way ease the death grip of Aetna, Unicare, MetLife, and the rest of the evil-doers. Clinton -- why are we not surprised? -- has gone even further, borrowing the Republican idea of actually feeding the private insurers by making it mandatory to buy their product. Will I be arrested if I resist paying $10,000 a year for a private policy laden with killer co-pays and deductibles?

It’s not only the Democratic candidates who are capitulating. The surrender-buzz is everywhere. I heard it from a notable liberal political scientist on a panel in August: We can’t just leap to a single payer system, he said in so many words, because it would be too disruptive, given the size of the private health insurance industry. Then I heard it yesterday from a Chicago woman who leads a nonprofit agency serving the poor: How can we go to a Canadian-style system when the private industry has gotten so “big”?

www.alternet.org

Long term care insurance a good hedge

It's a good bet that you'll live longer than previous generations in your family. But is it a good bet that you'll be able to afford those extra years?

That depends on how you plan for the future -- both the ordinary costs of living longer, and the extraordinary costs if you need care because of a physical or mental incapacity.

Americans are in denial about this oncoming crisis in costs of care. Maybe that's because we figure the government will come to our aid. Think again. Medicare only partially covers up to 100 days of skilled nursing care. State Medicaid programs will pay for your custodial care -- but only in Medicaid-funded nursing homes that are woefully under-funded.

Relying on Medicaid disqualifies the possibility of care at home or in an assisted living facility -- much more appealing choices. And you'd have those choices if you purchased long term care insurance as you reach age 50, when you are still young and healthy enough to qualify for the best policies at the lowest prices.

One critically important thing to keep in mind when purchasing long term care insurance is that before you can access the benefits, a licensed medical professional must "certify" that you need substantial assistance in performing at least two of six basic activities of daily living (such as dressing, bathing, toileting) or be "cognitively impaired" before the coverage will start paying your costs. You can't simply decide that it would be nice to move into an assisted living facility, and have your insurance pay the costs!

www.suntimes.com

5 ways to get auto insurance discounts

Just when you thought you'd taken advantage of every discount and shrunk your auto insurance premium to its tiniest, auto insurers are offering more ways to make your bill smaller than ever, and all you have to do is be yourself.

Almost every insurance company gives you a discount if you've had no accidents or tickets in the last three to five years, or if you buy a homeowner's or renter's insurance policy with the same company (multi-line discount), insure more than one car on your auto insurance policy (multi-vehicle discount) or own a car that is equipped with air bags. But some companies also will reward you for your profession, for your age and for using the Internet.

That college degree is worth something

21st Century Group (formerly 20th Century) has found that drivers with degrees in engineering are lower risks than other drivers. If you have a bachelor's degree in any number of engineering or science-related fields -- biochemistry, mathematics or mechanical engineering, for example -- you can get a discount on your auto insurance premium if you buy from them.

21st Century sells auto insurance in Arizona, California, Nevada, Oregon and Washington, and offers the "engineering and scientist" discount in all of those states. If you're a scientist or an engineer with a good driving record, you can save between 10% and 30% on the company's base rate, according to Ric Hill, vice president of corporate relations.

A base rate is the average amount of claims paid plus the insurance company's claims-processing fee. For example, if the company's base rate is $400, you could save between $40 and $120.

"Our company's founder saw that educators, scientists, and engineers have lots of characteristics that seem to show that they're the best drivers," says Hill. "Engineers, for example, being accustomed to dealing with fine details, are somewhat meticulous, which means they take good care of their automobiles." 21st Century found that the same holds true for teachers and other scientists.

Teachers deserve a break

Horace Mann Insurance (which sells auto insurance in every state except Hawaii and New Jersey) offers discounts to teachers who belong to state education associations or the National Education Association (NEA). Horace Mann's discounts start at 8% and are based on some assumptions the company made about teachers: They have a stable occupation, stable employment, and they understand they are under scrutiny by the community.

The discounts are available through Horace Mann or one of its two subsidiaries -- Allegiance Insurance or Teachers Insurance. In addition to Hawaii and New Jersey and New York, the discounts are not available in Georgia, Mississippi, Texas and Washington D.C.

The discount program for teachers who are state association or NEA members started about 15 years ago. Although the auto insurance discounts aren't enough to cover annual association dues, Horace Mann estimates the average household (two cars) and the average insurance discount will pay for about 50% of an association's average dues.

21st Century also offers teachers a break on auto insurance premiums, but only if you're certified by the State of California Commission on Teacher Credentialing, or if you are a full-time college or university professor. Savings for this program range from 10% to 30% of the company's base rate.

Save all you can save in the Army

GEICO offers a 2% to 15% discount to active and retired members of the military. The military discount is available in all states except Georgia, Indiana, Maine, Massachusetts, Michigan, Mississippi, New Jersey, New Mexico, Tennessee and Texas.

Another benefit of buying your auto insurance with GEICO if you're in the military is your ability to drop all coverages except comprehensive if you're shipped overseas. "Most armed service personnel will put their vehicles in storage and we allow them to drop their liability and other coverages while they're out of the country," says Richard Kidd, a retired sergeant major of the Army and assistant vice president for military services at GEICO. Additionally, if Uncle Sam sends you to a country in which the government offers hostile-fire pay, GEICO will knock 25% off your comprehensive bill while your car's in storage.

Drive toward the discounts in your golden years

Remember when a nickel was worth a dime? If so, you're probably eligible for some deep discounts on your auto insurance. The Hartford's AARP Auto Insurance Program offers AARP members the chance to chop their auto insurance bills by as much as 45%.

The AARP program offers drivers a 20% to 25% discount for insuring multiple cars on one policy, a 10% discount for holding both a homeowners and auto insurance policy with The Hartford and 5% savings for staying with the company for more than five years and not having any violations on your driving record.

The Hartford also guarantees that drivers who buy auto insurance through the AARP program will never have their policies canceled except for nonpayment of premium, DUI conviction or loss of license.

Have Internet, can save

Web surfers who want to purchase insurance online can benefit from discounts offered by companies such as Unitrin Direct.

Unitrin will shave $50 off your auto insurance premium if you purchase a policy directly from its Web site. In addition, Unitrin also will give a 10% discount to four-year college graduates under the age of 30. Both discounts are only available in Arizona, Colorado, Connecticut, Florida, Illinois, Indiana, Missouri, Nevada, Ohio, Oregon, Pennsylvania, Texas, Virginia and Wisconsin.

Because of cutthroat competition in the auto insurance market, all you have to do is sniff around a little bit for good deals like these. And although you might not be a professor, teacher, engineer or geologist, you can still save on your auto premiums by being a good driver, having good grades or insuring more than one car.